CSIF Union Threatens Strike Action for 600,000 Public Employees Over Muface Contract Uncertainty
The CSIF union has announced plans to initiate a strike on the upcoming Monday if the healthcare contract for public sector employees under Muface remains unfilled by January 27. This deadline marks the end of the period for insurance companies to submit their bids for the contract. Should the concert be left vacant, over half a million state workers affected by the ongoing crisis surrounding the mutual healthcare system could be mobilized for the strike.
Currently, Asisa is the only insurer still deliberating on whether to participate in the bidding process, with their decision expected to be communicated by the deadline. Other insurers, including Adeslas and DKV, who were part of the previous agreement, have chosen not to engage due to concerns about their ongoing financial losses linked to the contract.
Muface, a public mutuality under the Ministry of Digital Transformation and Public Function, allows public employees, predominantly teachers, the option of choosing between public or private healthcare through the insurance providers that participate in its biannual or triennial contracts. Approximately 1.5 million individuals, including public servants and their immediate families, are covered under this system, with 70% opting for private healthcare in 2024.
If the contract remains unfilled, there is a substantial risk that all beneficiaries would need to rely solely on the national health system, which is already facing significant pressure. The CSIF has indicated that if Asisa declines to participate in the bidding, they will proceed with strike actions in the first half of February.
The potential strike would impact a wide range of state personnel, including educators, university staff, and employees within various governmental departments and postal services. Excluding retired mutualists and national police officers who are prohibited from striking, the number of public employees poised to participate in the planned action exceeds 600,000.
In the coming days, CSIF representatives will launch an informational campaign to raise awareness among employees regarding the uncertainties surrounding their healthcare coverage. The volume of inquiries from public employees regarding their healthcare services has surged, with many expressing dissatisfaction with the quality of care they currently receive.
The current crisis at Muface can be traced back to October, although the underlying issue of chronic underfunding of this public contract has persisted for years. The existing agreement expired at the end of 2024, prompting the Ministry of Public Function to issue a new tender in October for the 2025-2027 contract, which proposed a 17% increase in compensation for insurance providers. However, for the first time in 50 years, no companies submitted bids.
A second tender was subsequently issued, featuring an accumulated increase of 33.5% in premiums, totaling nearly 4.5 billion euros over three years, yet neither DKV nor Adeslas opted to participate, leaving Asisa in a precarious position.
Óscar López, the Minister of Public Function, has consistently asserted that the situation is manageable and has emphasized the government's financial commitment to resolving issues within the system. He suggested that, if necessary, the current contract could be extended until September. However, the refusal of insurance companies to engage in the process has exacerbated the crisis.
Efforts to negotiate compensation for the losses incurred by insurers due to inadequate contract funding and rising inflation have seen some progress. Insurers, including Adeslas, Asisa, and DKV, have reported losses nearing 600 million euros over the past three years. Adeslas has estimated that participation in the current bidding would result in a loss of 250 million euros over three years, while DKV projects losses between 70 and 100 million euros. The Ministry of Public Function has indicated a willingness to explore compensation mechanisms for these financial setbacks.
The crucial question now is whether Asisa will choose to bid alone, given that other insurers have opted out. Currently, Asisa serves only 367,000 Muface beneficiaries, and if they decide to participate independently, their responsibility would expand to over one million public employees and their families.
